MTS CONCLUDES INVESTMENT IN MTS BANK

Moscow, Russia – April 02, 2013 – Sistema JSFC (“Sistema” or the
“Company”) (LSE: SSA), the largest publicly-traded diversified holding
company in Russia and the CIS, announces that MTS BV, a wholly owned
subsidiary of Mobile TeleSystems OJSC (“MTS”) concluded a transaction to
acquire a minority stake in MTS Bank OJSC (“MTS Bank”).

MTS acquires a 25.095% stake in MTS Bank for approximately RUB 5.1
billion through an additional share issue, in line with the terms
announced on October 25, 2012. The transaction is fully in line with
Sistema’s strategy of unlocking synergies between financial and mobile
services and MTS's 3i Strategy, which calls for the expansion into lines
of business that complement its extensive telecommunications and retail
networks. The proceeds from the transaction will be used to finance
expansion of the joint MTS Dengi project.

All regulatory approvals necessary for completion of the transaction,
including antimonopoly and Russian Central Bank approvals, have been
received. Completion of the transaction is expected next week with
subsequent registration of the share issuance report by the Russian
Central Bank. Following the transaction Sistema’s direct stake in MTS
Bank will be 65.25%.

In connection with the deal, MTS and MTS Bank signed a share purchase
agreement and MTS and MTS Bank also concluded a profit-sharing agreement
whereby MTS and MTS Bank would realize 70% and 30% of the proceeds from
the MTS Dengi project respectively. In addition, MTS and Sistema signed
a shareholders agreement and MTS, Sistema and MTS bank signed a warranty
and indemnity deed.

Sistema is the largest publicly-traded diversified holding company in
Russia and the CIS, which invests in and is a major shareholder of
companies serving over 100 million customers in the sectors of
telecommunications, high technology, oil and energy, radars and
aerospace, banking, retail, mass-media, tourism and healthcare services.
Founded in 1993, the company reported revenues of US$ 8.8 billion for
the third quarter of 2012, and total assets of US$ 46.3 billion as at
September 30, 2012. Sistema’s global depository receipts are listed
under the symbol “SSA” on the London Stock Exchange. Sistema’s ordinary
shares are listed under the symbol “AFKS” on the MICEX-RTS Stock
Exchange, and under the symbol “SIST” on the Moscow Stock Exchange
(MSE). Sistema was ranked number 315 in the 2011 edition of the Fortune
Global 500 list. Website: www.sistema.com

The Company is not an investment company, and is not and will not be
registered as such, under the U.S. Investment Company Act of 1940.

Some of the information in this press release may contain projections
or other forward-looking statements regarding future events or the
future financial performance of Sistema. You can identify forward
looking statements by terms such as “expect,” “believe,” “anticipate,”
“estimate,” “intend,” “will,” “could,” “may” or “might” the negative of
such terms or other similar expressions. We wish to caution you that
these statements are only predictions and that actual events or results
may differ materially. We do not intend to update these statements to
reflect events and circumstances occurring after the date hereof or to
reflect the occurrence of unanticipated events. Many factors could cause
the actual results to differ materially from those contained in our
projections or forward-looking statements, including, among others,
general economic conditions, our competitive environment, risks
associated with operating in Russia, rapid technological and market
change in our industries, as well as many other risks specifically
related to Sistema and its operations.

This document does not constitute or form part of any offer or
invitation to sell or issue, or any solicitation of any offer to
purchase or subscribe for, any shares or other securities of JSFC
Sistema and/or any of its subsidiaries and affiliated companies, nor
shall any part of it nor the fact of its distribution form part of or be
relied on in connection with any contract or investment decision
relating thereto, nor does it constitute a recommendation regarding the
shares or securities of JSFC Sistema and/or any of its subsidiaries and
affiliated companies.